How much revenue did Beauty Bungalows recognize during the year 2024?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Deferred revenue - beginning of year | $ 214,600 | $ - |
| Additions for initial franchise fees received | 489,400 | 214,600 |
| Revenue recognized during the year | (46,800) | - |
| Deferred revenues - end of year | $ 657,200 | $ 214,600 |
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the revenue recognized during the year 2024 was $(46,800). This figure reflects the revenue that Beauty Bungalows actually recognized during that year. It's important to note that this number is negative, which could indicate a few things, such as refunds or other financial adjustments that reduced the overall revenue.
In addition to the revenue recognized, the FDD provides information on deferred revenue. At the beginning of 2024, Beauty Bungalows had deferred revenue of $214,600. Throughout the year, they added $489,400 in initial franchise fees received. By the end of 2024, the deferred revenue balance was $657,200. Deferred revenue represents payments Beauty Bungalows has received for goods or services that have not yet been provided or earned.
For a prospective franchisee, these figures offer insight into Beauty Bungalows's revenue recognition practices and how they manage initial franchise fees. The negative revenue recognized in 2024 warrants further investigation to understand the underlying reasons. Understanding the franchisor's revenue and deferred revenue trends can help potential franchisees assess the financial stability and growth potential of Beauty Bungalows.